Okay so we might have spiked your interest with that headline. But today we really are asking if size matters when it comes to your business, your jobs, and in turn your Public Liability insurance. Having the right insurance in place for each piece of work you do is vital to protecting your business financially. Here is why size does matter.
It’s how you use it
You might think it’s a small job and you don’t need a lot of cover, however the amount of liability that will be payable doesn’t correlate to the job size. The work your perform might be on a big work site for a skyscraper, or it might be in someone’s home fixing a gas pipe. Either way, the risks for those third parties around you are very similar and arguably the same.
If for example you are working on site and a hammer falls and lands on someone’s shoulder below (it could happen), it would have the same implication as if this happened whilst working on a private client property at a home. Both parties would in theory have the same injury, same medical needs, amounting to the same costs no matter which site you are on. Therefore we can see that it doesn’t matter how big or small the job – you can be held liable for the same costs either way.
What if it’s not enough?
The amount of the sum insured for your Public Liability Insurance, if not enough to cover the medical expenses or damages which have occurred to a third party or to third party property, will need to be paid for. Therefore when your liability exceeds the sum insured, you must pay the balance. This is why it’s important to insure yourself for the amount you deem to be correct after a thorough risk assessment. If you are a sole trader or a contractor, it’s particularly important to consider Public Liability Insurance to ensure that your personal savings and assets are not affected should something go wrong.
It’s very important to think carefully and do plenty of research to decide on your public liability sum insured. Every business is different with regards to size, operations, and risks therefore no one answer is correct. If you require further information regarding insurance for your trade business contact All Trades Cover on 1300 826 850 and we’ll be more than happy to answer your questions.